McDonald's have been told they can not build on Ironbark Avenue but are yet to say whether they will launch a court appeal.
Camden Council unanimously voted last week to refuse the development application for a McDonald's restaurant in Camden that had been subject to community outcry since May.
The main reason for refusal was "insufficient on-site car parking".
When asked by the Advertiser whether McDonald's planned to appeal against the refusal in the Land and Environment Court, a spokeswoman said:
"We're very disappointed with the decision, but we're assessing the situation and are yet to make a decision on what we do next."
Marian Kerr, who lives close to where McDonald's wanted to build, was "absolutely delighted" at the news that the council had refused the application.
"It's really brilliant," she said. "I really did feel it would go ahead...I didn't think the council would stop it.
"If they [McDonald's] haven't got enough parking they definitely would block the street.
"I don't feel it will go ahead or that any appeal will get it going."
David Funnell was the only councillor who spoke on the development application at the meeting.
"I've always advocated a McDonald's restaurant," Cr Funnell said.
"The thing is that in the right spot Camden definitely could handle and needs one to keep people in this town.
"But where they propose to build it is in an area I believe should have got a blanket rezoning for residential use to keep it in keeping with the rest of the area."